- Kaiko stated the Curve Finance CEO’s final CRV deposit was made to guard him from liquidation.
- The blockchain intelligence agency famous that the CEO has 200 million CRV for a mortgage of 60 million USDT.
- Their report additionally recommended that there may not be sufficient money to help the CEO’s place if he have been liquidated.
In a report launched earlier in the present day, blockchain intelligence agency Kaiko famous that Curve Finance CEO Michael Egorov deposited $35 million price of CRV to Aave V2 in 3 massive transactions over the previous few weeks. In response to the corporate, these filings might be an try to guard its massive lending place on DeFi lending protocols from liquidation.
In response to Kaiko, this isn’t the primary time the CEO has used DeFi lending and borrowing protocols. Moreover, the CEO’s newest CRV deposits on Aave V2 are certainly not his largest made on the DeFi platform, the blockchain intelligence agency famous. Kaiko revealed that Egorov presently has 200 million CRV tokens deposited on Aave V2, which is backing a 60 million USDT mortgage.
Kaiko suspects Egorov’s newest filings are an try to guard his place and keep away from liquidation. Curiously, they highlighted the truth that the present CEO place is likely one of the most essential in DeFi historical past. On prime of that, Egorov’s pockets is accountable for nearly 95% of the CRV deposited on Aave V2.
This huge place is regarding for the DeFi area, provided that there will not be sufficient liquidity to help the place. In Egorov’s situation, liquidators would most probably interact in a sequence of actions: exchanging ETH for USDT, utilizing USDT to repay the borrowed quantity, buying CRV tokens, and eventually exchanging CRV for ETH.
The profitability of this course of is determined by the power to rapidly promote the obtained CRV tokens at a good worth. Nonetheless, a wave of liquidations placing promoting stress may probably drive CRV’s worth down, in line with the blockchain intelligence agency. This decline might even attain some extent the place the collateral is priced decrease than the borrowed tokens.
At press time, the biggest supply of liquidity for CRV was on Curve itself within the CRV-ETH pool, which was round $50 million in whole worth locked (TVL), in line with the report. . In the meantime, Uniswap V3 had about $4.5 million throughout all of its CRV swimming pools.
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